The Groove tool is used to remove material from a solid feature of the part’s body.
In order to use the groove tool, you must first create a sketch that can be used to remove material from the part. It doesn’t matter what shape this sketch is, as long as it is a closed profile.:
Click on the Groove icon:
Select the profile as the sketch and then select the axis of rotation; this can be the vertical axis in our case. If necessary, select the angle limits to restrict the rotation to a determined sector. You can also try experimenting with the other options (such as Thick Profile) to see what they do:
Click OK when done: